Friday, June 24, 2016

Dow Jones futures crash

At 5 PM ET today, the Dow Jones futures is down nearly 500 points pointing to a huge US markets crash right at the opening. The markets are expected to stay nervous throughout the trading session today mirroring the world markets crash earlier today.

Sunday, June 19, 2016

Relation between Cost of Living and GDP (Nominal and PPP)

Sometimes, it is possible to judge the cost of living by comparing the nominal vs PPP GDP of that country. If the GDP based on PPP basis is far higher than the nominal GDP, it generally means that the cost of living is lower in that country.

For example, India has a $8.6 trillion economy GDP on PPP basis but is only about $ 2.4 trillion Nominal GDP. So, India's cost of living is low. Similarly, Switzerland has a PPP GDP of $ 493 Billion and a much higher, $ 651 Nominal GDP. Thus, Switzerland is very expensive on cost of living basis. Since the USA is the base country, at any given moment of time, in theory, US GDP on nominal and PPP terms is always the same.

Wednesday, December 30, 2015

Medium term Nifty levels and outlook for traders

Nifty has been in quite a long correction after the Modi wave. It is currently at 7928 (Dec 28 2015 closing level). This is a very interesting phase for the Index because for the first time after many months, it is showing a double bottom.

Ideally, a close below 7400-7500 level would make the Nifty healthy and lead to a huge, fast wave up, but the formation of this double bottom needs to be seen very carefully.

Confirmation of this double bottom is quite some time away (8340-8350+). If it crosses, then we are in a huge wave up that could last for many months.

One can take 30% positions now. Watch the upper level and add there. If Nifty crashes to 7500 or below, we will take another look. One can add there. Ideally, according to celebrity traders, it is always better to average in the direction of confirmation. But, since we are only taking 30% positions and expecting a bull move after this bottom, it is alright to add carefully at the lower levels.

Wednesday, August 19, 2015

Nifty levels for August 19 2015

Important Nifty Index levels for closing session on 19th August 2015

Upper levels - 8535
A break above this level will help the market run

Lower levels - 8490, 8420
Nifty will collapse below these levels


Wednesday, July 8, 2015

Important Nifty levels for the day July 09, 2015

Important Nifty levels for the first half of the day (intra-day)



Monday, May 18, 2015

Nifty options and futures

Nifty based derivatives are some of the most popular Securities products in India.

Nifty Options and Futures traded values rank among the highest traded products in the World. Of course, value-wise, Nifty derivates are yet to catch up with Dow Jones, S & P 500, or Nasdaq based futures and options. However, growth and volume-wise, India's ranking is very high.

Nifty Put and Call options are widely used by institutions and individuals to hedge or trade.

Wednesday, May 13, 2015

Components of the Nifty Index

The current composition of the Nifty Index by companies are as follows:

Company Name Symbol
Ambuja Cements Ltd. AMBUJACEM
Asian Paints Ltd. ASIANPAINT
Axis Bank Ltd. AXISBANK
Bajaj Auto Ltd. BAJAJ-AUTO
Bank of Baroda BANKBARODA
Bharat Heavy Electricals Ltd. BHEL
Bharat Petroleum Corporation Ltd. BPCL
Bharti Airtel Ltd. BHARTIARTL
Cairn India Ltd. CAIRN
Cipla Ltd. CIPLA
Coal India Ltd. COALINDIA
Dr. Reddy's Laboratories Ltd. DRREDDY
GAIL (India) Ltd. GAIL
Grasim Industries Ltd. GRASIM
HCL Technologies Ltd. HCLTECH
Hero MotoCorp Ltd. HEROMOTOCO
Hindalco Industries Ltd. HINDALCO
Hindustan Unilever Ltd. HINDUNILVR
Housing Development Finance Corporation Ltd. HDFC
I T C Ltd. ITC
Idea Cellular Ltd. IDEA
IndusInd Bank Ltd. INDUSINDBK
Infosys Ltd. INFY
Kotak Mahindra Bank Ltd. KOTAKBANK
Larsen & Toubro Ltd. LT
Lupin Ltd. LUPIN
Mahindra & Mahindra Ltd. M&M
Maruti Suzuki India Ltd. MARUTI
Oil & Natural Gas Corporation Ltd. ONGC
Power Grid Corporation of India Ltd. POWERGRID
Punjab National Bank PNB
Reliance Industries Ltd. RELIANCE
State Bank of India SBIN
Sun Pharmaceutical Industries Ltd. SUNPHARMA
Tata Consultancy Services Ltd. TCS
Tata Motors Ltd. TATAMOTORS
Tata Power Co. Ltd. TATAPOWER
Tata Steel Ltd. TATASTEEL
Tech Mahindra Ltd. TECHM
UltraTech Cement Ltd. ULTRACEMCO
Vedanta Ltd. VEDL
Wipro Ltd. WIPRO
Yes Bank Ltd. YESBANK
Zee Entertainment Enterprises Ltd. ZEEL

Monday, May 4, 2015

Nifty levels for May 4 to 8, 2015

Nifty key levels





Thursday, April 9, 2015

Are we in a Long Term Bull Market?

Good question!

Although it is a brave stand to take, especially for a long term call, all indications show that we are indeed in a long term trend.

The view can be taken from various standpoints.

The bottom that we saw in Nifty and Sensex 2008 after the massive fall was actually the start of the 3rd wave on a long term basis. On a slightly lesser time frame, we are currently in the 3rd of 3rd wave, which started in 2011. On a shorter time frame, the Modi victory is another 3rd wave, but on a much more shorter time frame.

Business cycle research by several big MNC research and consultancy companies shows that India is set to grow at a staggering pace from 2015-2035, even beating China in these years. The scenario is slowly playing out. India is on course to be by far the 3rd largest nation on GDP on PPP basis.

Sunday, January 13, 2013

Trading Size

What should be your ideal trading size?

There is no standard answer when you are trying to trade shares and stocks. It depends on how much experience you have trading the markets, your education level (trading related), the product you are trying to trade, and so on. In short, this cannot be generalized. But here are some guidelines that you can try to follow:
  • Never trade the markets directly. It is a surefire recipe for disaster. Not only will you lose all your money, your ego may tell that you will improve, thus hastening the loss making cycle, which only gets worse as you lose confidence (reason: most beginners keep increasing size to make up for lost money).
  • Try to spend at least 6 months under an expert's glare. Trade paper money and carefully analyze performance with your guide
  • Start trading real money only when you are getting good results. Even this is not a guarantee. Oftentimes, paper trading results are manipulated!